Economic growth to remain stable over the coming two years -NBK: Egypt’s economic growth is set to remain stable over the coming two years, with GDP expanding at a 5.2% clip during the current fiscal year and 5.0% in FY2020-2021, the National Bank of Kuwait (NBK) forecasts in a new report. Growth will be supported by increasing capital expenditure, a rebound in tourist receipts, and surging natural gas production.

Inflation: NBK expects inflation to average 12.5% during FY2019-2020, but sees it reaching the central bank’s 9% target rate in FY2020-2021. Should inflation continue on this path, NBK forecasts the CBE to move ahead with 100-200 bps of rate cuts by the middle of 2020.

The country’s debt burden remains a problem, and will continue to make it harder for the government to make serious progress with reducing the budget deficit. NBK forecasts the debt-to-GDP ratio to increase during the current fiscal year to 90% from 86%.

The 7.2% deficit target is achievable, though, provided that the government pushes ahead with its reform commitments, and that oil prices remain within the budget’s benchmark price of USD 65-67 bbl.